Changing Guard at Ithala Bank

Mhlaba Memela

Mhlaba Memela

KwaZulu-Natal treasury head of department, Sipho Shabalala, has been redeployed as acting chief executive of the troubled Ithala Bank.

Shabalala's appointment is for five months and his successor at the treasury is Lesley Magagula, who will serve as acting head.

Current Ithala chief executive, Ike Nxedlana, has been moved to head the Richards Bay Industrial Development Zone, where he will manage the Sohar Port Special Zone.

Addressing the media in Durban yesterday, MEC for finance and economic development, Zweli Mkhize, said the move was part of a mutual agreement between his department, the Ithala board, and the Richards Bay IDZ.

Mkhize said Shabalala's move was "motivated by the need to expedite Ithala's turn-around strategy".

The move follows disagreements between the board and Nxedlana. Mkhize dismissed insinuations that Shabalala's redeployment was because of pressure from senior ANC leaders and opposition parties.

ANC insiders recently told Sowetan that many within the party feel that their efforts to deliver "were being frustrated" by Shabalala.